The proactive American Athletic Conference (AAC) has become the first NCAA league to mandate a minimum amount of benefits that its member schools must provide to their athletes.
AAC school presidents voted to implement a requirement for “at least $ 10 million in cumulative extra benefits over a three-year period, commencing with the 2025-26 academic year,” as reported by Yahoo Sports.
“This decision further illustrates how the American is distinct from other conferences,” stated AAC Commissioner Tim Pernetti.
“We are dedicated to setting the American apart in every possible way and delivering an exceptional experience for student-athletes while positioning our members for the future of college athletics.”
However, this decision may lead to unforeseen ramifications.
Pernetti told Ross Dellenger that AAC members who fail to meet the $ 10 million financial threshold by the 2027-28 academic year will face a “review” of their membership status within the conference.
American Athletic Conference presidents voted today to establish a minimum standard of benefits that schools are required to share with athletes in the new rev-share era – $10 million over three years – becoming the first conference to make such a move.https://t.co/E1DnpoDDiS
— Ross Dellenger (@RossDellenger) March 7, 2025
According to Essentially Sports, Florida Atlantic, UAB, and North Texas are significantly below the required revenue-sharing threshold. This year, these three programs have collectively provided $ 5,987,661 for revenue sharing.
Army and Navy are exempt from this mandate due to their federal funding.
USF Vice President for Athletics Michael Kelly was not available for comment, but the Bulls’ athletic program is currently receiving historically high levels of funding. It is focused on navigating and succeeding in the evolving landscape of college athletics.
The initiative known as the “Minimum Investment Program” only establishes a baseline. Conference schools can allocate up to $ 20.5 million annually in benefits for athletes, based on the NCAA’s agreement to resolve antitrust lawsuits by allowing athletes to earn money from their name, likeness, and image.
A federal judge is expected to make a final ruling on this settlement in April.
Yahoo noted that the Minimum Investment Program allows schools to offer up to 2.5millioninnewscholarshipsandanother 2.5 million in stipends that some institutions have begun allocating to their athletes. While the conference won’t dictate the distribution of these benefits, schools will be required to report their spending.
If the AAC’s actions signal future trends in college athletics, there is speculation that many Division I programs may be compelled to move down a level. This could also accelerate the formation of a “super league” comprising only around the top 75 programs.
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